State to decide if Central Hudson records stay secret

Jul. 13, 2013

Written by

Poughkeepsie Journal

The state Public Service Commission is expected to decide whether utility company financial records should be granted trade-secret status, which would prevent the public from access.

Central Hudson Gas & Electric Corp. has asked the commission’s records officer not to release commercially sensitive data submitted during the PSC oversight of Fortis Inc.’s $1.5 billion purchase of the utility based in Poughkeepsie. Central Hudson became a subsidiary of Canada’s Fortis Inc. on June 27.

Central Hudson calls this standard procedure, but an advocacy group for low-income ratepayers believes the records may have details about future capital project spending, which could drive gas and electric rates higher. The Public Utility Law Project wants that information released.

Central Hudson said the financial records contain trade secrets that, if released, could hurt the company and its customers.

In a July 3 letter, a Central Hudson attorney says: “The information concerns material that would permit unauthorized persons to speculate in the markets … (and) would provide others with a competitive advantage.”

Releasing records may affect capital markets in relation to funding for projects, Central Hudson spokesman John Maserjian said. The information has to be released broadly and simultaneously due to the U.S. Securities and Exchange Commission, he said.

Public Utility Law Project filed a Freedom of Information Law request for records the group believes might reveal how $215 million will be spent by Fortis for upgrades in Central Hudson’s territory, as promised in its recent purchase deal.

Gerald Norlander, the utility project’s executive director, said: “It’s important for customers to know, are they planning to spend a lot of money and for what?”

Central Hudson and others have filed similar requests. On July 3, there were four other disclosure-exception motions filed by three other utilities.